Hut Group buys Probikekit.com from Encore Capital

The Hut Group, owner of River Island, has bought Probikekit.com - an online retailer that focuses on cycling gear, brakes and saddlebags -, for an undisclosed sum from Encore Capital. This movement will be financially backed by the

9 million pounds that Hut Group secured from various investors earlier in January.

“Following a review of the sector we identified Probikekit as the outstanding brand for acquisition given its heritage, the breadth and longevity of its supplier relationships and its international customer reach,” explained Matthew Moulding, chief executive of The Hut Group.

PBK sells accessories, components and clothing related to the pursuit of road cycling and was founded in 1998. It is seen as a complementary business by online retailer and brand owner The Hut Group and therefore added to its Lifestyle´s portfolio.

In December 2011, Encore Capital backed the management buy-in (MBI) of PBK and installed former Tesco Direct´s CEO Steve Robinson as chairman. The MBI was completed based on the forecast that the cycling apparel business would deliver revenues of 20 million pounds in 2012, revealed Growthbusiness.co.uk.

Moulding also argued the sound back-up of this investment, stressing that “Through our due diligence it quickly became apparent that Encore Capital had created a stable and professionalised platform ideal for the group to enter the specialist cycling and triathlon markets.”

The Hut Group advanced its intentions to broaden its Lifestyle division offering and generate product and customer cross-selling opportunities. In return, PBK will enhance its range to include triathlon gear.

The Hut Group has been advised in Manchester on the acquisition by law firm Addleshaw Goddar and Ernst & Young. The Hut Group has also appointed Clive Lewis to their board.